HUL’s 3% volume growth disappoints Street

FMCG major Hindustan Unilever reported a 17.8% year on year growth in net profit at Rs 1,252 crore for the third quarter ended December 31, 2014 (Q3FY15), aided by the exceptional income arising from the sale/transfer of properties. The fast moving consumer goods (FMCG) company had a profit of Rs 1,062 crore in a year ago quarter.

The company recorded an exceptional gain net of Rs 407 crore including profit on sale of surplus properties in Q3FY15.

Net sales during the quarter under review grew by 7.7% at Rs 7,579 crore against Rs 7,038 crore in the corresponding quarter of previous fiscal, HUL said in a statement.

The company has reported volume growth of 3% in December quarter as 5% growth recorded in September quarter. It had underlying volume growth of 4% in December 2013 quarter.

Shares of HUL hit a record high of Rs 947 on NSE in early morning trade but hit a day low of Rs 888.25 before closing 5.27% lower at Rs 892.80. In the past ten trading sessions, the stock rallied 25% from Rs 756 on January 2, 2015 as compared to less than 2% gain in benchmark CNX Nifty.